From the drill results I have seen of the known resource and the new drill intercepts, are all from around 100m+.
I dont mean to "poo poo" the WFE resource, just stating that its less attractive/economic than it if it were closer to surface. This is probably why the market is currently giving it a fair discount.
My other concern with the WFE deposit is its essentially an extension of FMG's 3billion tonne Solomon hub, more specifically the Kings project at 1.3billion tones @ 56.5%fe. IMO for WFE's ore to get off the ground it needs economy of scale and therefore would need FMG to get involved. The problem is FMG has a truck load of there own ore, probably enough to see out the projected Iron ore demand/prices that make such a deposit viable. I could be wrong.
I'd like to hear others opinions on this as I may be off track.
I really like CAZ for its Parker range project, I believe it will be one of several new DSO projects in the Yilgarn that will justify port expansions at Esperance. I'm still hanging out for the likes Cliffs or MIN to show an interest in project.
Judging by MIN's recent presentation, I suspect they are in fact going to have fair dip at tendering for new port/handling/control expansions at Esperance.....just my reading between the lines thoughts!
I hold both CAZ and MIN.
cheers.
CAZ Price at posting:
34.5¢ Sentiment: LT Buy Disclosure: Held
